All articles on this site were written by. A more accurate measure of growth than the GDP is the net domestic product (NDP), which is simply the GDP minus capital depreciation, which is a measure of the amount of output used to replace aging stock of capital. NNP is the actual measure of the national income. Net operating income (NOI) - Income after the deduction of operating expenses but before income taxes and interest are deducted. It is calculated by subtracting depreciation from GNP at basic prices.Related Definitions:Budget (National) ... CallUrl('www>lse>co>ukasp?searchTerm=&iArticleID=2215&definition=national_income',0), ~TildeLink() Gross national product minus depreciation. It is the Hamiltonian that equals constant-equivalent utility. (If income from abroad is allowed for, gross domestic product becomes gross national product (GNP), and if depreciation is also allowed for, it becomes net national ... CallUrl('en>citizendium>orgreferenceforbusiness>comhtml',0), It can be defined as the ~TildeLink() (NNP) minus indirect taxes. National income can also be calculated by simply summing up all employee compensation, rent, interest, proprietors' income, and corporate profits. They are called transfer payments because the government takes the money from those who earn the income and gives it to the beneficiaries of the transfer payments. Net output ... CallUrl('www-personal>umich>edu<%7Ealandearhtml',0), In the Income Approach, ~TildeLink() (NNP) is GNP minus depreciation, Net National Income (NNI) is NNP minus indirect taxes, Personal Income (PI) is NNI minus retained earnings, corporate taxes, transfer payments, and interest on the public debt, ... CallUrl('www>fact-index>comhtml',0), made for the loss of value due to the depreciation of assets, and the word "domestic" indicates that net income from abroad is not included. The primary measures of national income and output are Gross Domestic Product (GDP), Gross National Product (GNP), Gross National Income (GNI), ~TildeLink() (NNP), and Net National Income (NNI). CallUrl('wiki>smallbusiness>comeconlib>orghtml',0). Generally, the smaller the difference between GDP and NDP, the more efficient the economy. Because there is always some capital depreciation, the rate of NDB growth will always be less than GDP growth. Net national product (NNP) - GNP minus depreciation. On the other hand, the production of cars by GM in China is counted in the GNP but not GDP. Economics Mcqs for Lecturer & Subject Specialist Exams. Invest for maximum results with a minimum of risk. Required fields are marked *. It indicates the net output available for the consumption by society where society includes consumers, producers and government. The largest component of national income is: 76. A. National income equals net national product: 75. What is what? here you will find the the Baisc to Advance and most Important Economics Mcqs for your test preparation. Describes the best tax policy to maximize happiness and economic wealth, based on simple economic principles. Another national account is disposable income (DI), which is simply personal income minus income taxes, what many people call take-home pay. Total income received by the factors of production: Employee compensation plus net interest plus rent plus proprietors' income plus corporate profits. Net National Product equals ? However, there are several other national accounts that give a slightly different view of the economy. ~TildeLink() equals GNP [minus] the capital consumption allowances, which are decudted from gross private domestic fixed investment to express it on a net basis. Net national income encompasses the income of households, businesses, and the government. Your email address will not be published. The interest earned on government bonds, notes, and bills are part of personal income but not national income, because the government is not considered a resource, since it is not a factor of production.
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